You Wrecked Your Friend’s Car… Now What?

There are three main questions we must consider when addressing these situations. First, do you live in their house? If you live in their house, most insurance companies require that you are listed on their policy. If you are not listed on the policy, there is no coverage. Second, are you related? Even if you are not a part of the household, relationship to the insured may affect coverage of drivers not listed on the policy. Third, did they give you permission? If you took the car without permission, there is often no coverage on the vehicle when you were driving it. 

More often than not, if there was coverage on the vehicle when you drove it, the vehicle owner’s insurance will be primary and yours will be secondary. For example, let’s say you borrowed Bob’s car. If Bob only has liability, he might come back and sue your insurance for the damage done to his car when you were driving it. It is also important to consider Bob’s liability limits. If you hurt someone very badly when you wreck Bob’s car, and his liability limits are exhausted, your insurance can be sued.